Index: src/org/python/core/PyString.java
===================================================================
--- src/org/python/core/PyString.java	(revision 3444)
+++ src/org/python/core/PyString.java	(working copy)
@@ -2593,23 +2593,28 @@
     }
 
     private PyList splitfields(String sep, int maxsplit) {
-        if (sep.length() == 0) {
-            throw Py.ValueError("empty separator");
-        }
 
         PyList list = new PyList();
 
         int length = string.length();
         if (maxsplit < 0)
-            maxsplit = length;
+            maxsplit = length + 1;
 
         int lastbreak = 0;
         int splits = 0;
         int sepLength = sep.length();
+	 int index;
+	 if((sep.length() == 0) && (maxsplit != 0) ) {
+	     index = string.indexOf(sep, lastbreak);
+	     list.append(fromSubstring(lastbreak, index));
+	     splits++;
+	 }	
         while (splits < maxsplit) {
-            int index = string.indexOf(sep, lastbreak);
+            index = string.indexOf(sep, lastbreak);
             if (index == -1)
                 break;
+	     if(sep.length() == 0)
+		  index++;
             splits += 1;
             list.append(fromSubstring(lastbreak, index));
             lastbreak = index + sepLength;
@@ -3095,13 +3100,18 @@
     }
 
     final PyString str_replace(PyObject oldPiece, PyObject newPiece) {
-        return str_replace(oldPiece, newPiece, string.length());
+	 if (!(oldPiece instanceof PyString) || (((PyString)oldPiece).string).length() == 0)
+	     return str_replace(oldPiece, newPiece, string.length() + 1);
+	 else
+	     return str_replace(oldPiece, newPiece, string.length());
     }
     
     final PyString str_replace(PyObject oldPiece, PyObject newPiece, int maxsplit) {
         if(!(oldPiece instanceof PyString) || !(newPiece instanceof PyString)){
             throw Py.TypeError("str or unicode required for replace");
         }
+	 if  (string.length() == 0)
+	     return (new PyString(string));
         return ((PyString)newPiece).str_join(str_split(((PyString)oldPiece).string, maxsplit));
     }
 
Index: Lib/test/string_tests.py
===================================================================
--- Lib/test/string_tests.py	(revision 3440)
+++ Lib/test/string_tests.py	(working copy)
@@ -261,13 +261,10 @@
         self.checkequal('one@two@three@', 'one!two!three!', 'replace', '!', '@')
         self.checkequal('one!two!three!', 'one!two!three!', 'replace', 'x', '@')
         self.checkequal('one!two!three!', 'one!two!three!', 'replace', 'x', '@', 2)
-# Jython transition 2.3
-# str.replace doesn't handle an empty string to be replaced. 
-# http://jython.org/bugs/1768074
-#        self.checkequal('-a-b-c-', 'abc', 'replace', '', '-')
-#        self.checkequal('-a-b-c', 'abc', 'replace', '', '-', 3)
-#        self.checkequal('abc', 'abc', 'replace', '', '-', 0)
-#        self.checkequal('', '', 'replace', '', '')
+        self.checkequal('-a-b-c-', 'abc', 'replace', '', '-')
+        self.checkequal('-a-b-c', 'abc', 'replace', '', '-', 3)
+        self.checkequal('abc', 'abc', 'replace', '', '-', 0)
+        self.checkequal('', '', 'replace', '', '')
         self.checkequal('abc', 'abc', 'replace', 'ab', '--', 0)
         self.checkequal('abc', 'abc', 'replace', 'xy', '--')
         # Next three for SF bug 422088: [OSF1 alpha] string.replace(); died with